Ethiopia agrees to first wheat purchase of 2019

WASHINGTON, D.C., U.S. — The government of Ethiopia has reached agreement to acquire 400,000 tonnes of milling wheat from three companies: Bunge SA, Amropa AG and Archer Daniels Midland Co. The wheat is valued at $122 million, according to a Feb. 22 Global Agricultural Information Network (GAIN) report from the Foreign Agricultural Service of the U.S. Department of Agriculture.

The USDA said the wheat is expected to originate from the Black Sea region and will be shipped in April/May. It will be Ethiopia’s first wheat purchase of 2019.

Bunge will supply 200,000 tonnes at an average price of $308.5 per tonne, while Amropa and ADM will each supply 100,000 tonnes at $308.4 and $299 per tonne, respectively, the agency noted.

The USDA said Ethiopia received a lower offer from a Dubai-based grain company to supply the entire wheat tender at $270 per tonne, but the offer was rejected after it was determined that the wheat failed to meet the technical requirements needed.

“This latest round of international procurement of wheat will help ease shortages of wheat flour in the country,” the USDA said. “The GOE will distribute the wheat to local milling companies and bakeries enrolled under the GOE subsidized wheat program. Ethiopia will continue to import wheat in order to satisfy rising consumer demand. Post projects wheat imports to reach 1.7 million tonnes in MY 2018-19.”